tag:blogger.com,1999:blog-364095052012-01-08T10:24:05.383-05:00<center>Energy that doesn't work FOR a manufacturing business is actually working AGAINST it... and remember that energy <i>never</i> stops working. That's what we talk about here.<br> <p> <i>All contents (C)2006-2011 by Christopher Russell. <br>Feel free to forward these comments, showing attribution to energypathfinder.com.</i></p></center>Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.comBlogger1491100tag:blogger.com,1999:blog-36409505.post-91316068608382279642012-01-08T10:15:00.003-05:002012-01-08T10:24:05.398-05:00

Here's a question from a reader: What is the best approach to engage an organization to participate in an energy efficiency program, when there is not a direct relationship to upper management?And here's my reply:I guess you know that your question raises a subject that I’ve written about many times. I’ll recommend a few of my blog posts:1. Scenarios for Energy Management2. From Energy to Cash

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-58498600267502763992012-01-06T13:16:00.001-05:002012-01-06T13:19:02.586-05:00

What would be at the top of a business leader’s wish list for the new year? Would it be greater sales volume, easier credit, lower taxes, streamlined regulations, or all of these? These wishes are really different means to the same end: improved capital recovery. In simple terms, capital recovery is the “velocity” at which an investment creates new wealth. From a shareholder perspective, it

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-42679705824857800902011-11-28T10:30:00.003-05:002011-11-28T10:40:20.082-05:00

Energy efficiency vs. business growth-- it's NOT a zero sum game, and I'll prove it. Learn how to monetize energy choices, and make a compelling business case for energy improvements. Join me for a two-hour web seminar at 11:00 am eastern on Friday, December 9, produced by the Association of Energy Engineers.

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-49434164431253506032011-11-19T07:54:00.006-05:002011-11-19T08:25:40.367-05:00

Many people ask this question. In short, the answer is this: if you become an energy manager, you can pretty much expect to make the same salary you get now. Your salary may increase if you can justify it with the additional value you create. Energy managers are not created equal. To see why I say this, take a minute to read an earlier post, “What Does an Energy Manager Do?” The energy

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-86202578550951672162011-10-28T15:03:00.006-05:002011-10-28T17:15:30.431-05:00

The U.S. Department of Energy will soon evolve its program structure, merging the current Industrial Technologies Program with the Buildings program. Deputy Assistance Secretary Kathleen Hogan gives a concise overview of “Better Plants, Better Buildings.” If energy efficiency is to be achieved in the buildings and industry sectors, these will be the critical success factors:1. Direct cost

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-81092155631834892102011-09-14T10:21:00.004-05:002011-09-14T10:32:04.823-05:00

Thank W. Edwards Deming for the brilliant quote that serves as the title to this post. Deming essentially taught Japanese industry how to develop efficient industrial production techniques after World War II. The rest, as they say, is history. In the spirit of Deming, I am pleased to debut on September 23, 2011 a new webinar for the Association of Energy Engineers, entitled "Designing and

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-4565312133847539802011-08-02T05:24:00.002-05:002011-08-02T05:27:43.213-05:00

UNDERSTAND WHAT AN ENERGY PERFORMANCE CONTRACT (EPC) IS… and what it can and cannot do. An EPC allows you to obtain capital and expertise to install and operate energy-saving measures. In return, you share the savings with the vendor under specified contract terms. Energy savings depend on more than “new equipment.” Expertise and services are at least as important. A successful outcome is

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-14047223582413363082011-07-23T13:51:00.010-05:002011-07-23T14:16:27.853-05:00

Here's a two-part video on YouTube that challenges the conventional wisdom for measuring the investment performance of energy improvements. This presentation is intended for corporate decision-makers. Rates of return can be measured whether accepting or rejecting those improvements. in either case, this approach yields far more information than a simple payback measure. Click on the video's

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-34113582710145750232011-06-22T10:57:00.004-05:002011-06-22T15:33:59.373-05:00

A very succinct evaluation of today's energy policy comes from the Council of Industrial Boiler Owners. While some good points are made here, there's also a gap in the logic. My comments are below this quote:"One of the goals/objectives of the Obama Administration has been to delink fossil energy from Gross Domestic Product (GDP). So far it looks like they have been pretty good at it. The only

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-27670859079956577882011-06-16T21:07:00.004-05:002011-06-16T21:41:53.551-05:00

[Ed. note: The implementation of industrial energy efficiency depends as much on organizational dynamics as it does on technical acumen. The "next generation of industrial energy efficiency experts" must become adept at creating consensus across departmental lines. They must also demonstrate a compelling linkage between energy and business performance. These are skill sets that can and should

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com3tag:blogger.com,1999:blog-36409505.post-2743203736001624002011-05-03T14:46:00.005-05:002011-05-04T11:25:52.428-05:00

Despite our economy's ever-increasing reliance on information as a means for creating value, federal budgeteering has resulted in a sizeable reduction of funding for the Energy Information Administration. A 14 percent cut to the EIA's budget is to be extracted now, not by spreading the cut over a full year, but instead squeezing it from the remaining FY 2011 budget, which runs through September

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-57356782510159206912011-04-26T13:14:00.010-05:002011-04-26T14:07:49.041-05:00

Driven by the best of intentions, a growing number of public and private organizations aspire to “sustainability.” These are operating principles that minimize environmental impacts and waste while reducing operating costs. This pursuit, however, is not without impacts on other elements of facility asset management. Like sustainability, these other elements also require resources and are subject

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-22708123266747684282011-04-19T22:13:00.002-05:002011-04-19T22:18:39.168-05:00

On April 19, 2011, the U.S. Supreme Court will hear oral argument in American Electric Power v. Connecticut. This case will likely become the defining decision on climate change litigation, and it will have profound implications for environmental law generally as well as the future of climate change policy in the United States. Last year's 2nd Circuit decision in this case was the first time a

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com2tag:blogger.com,1999:blog-36409505.post-34582896991054073222011-04-12T11:11:00.003-05:002011-04-12T11:40:38.733-05:00

With 50 states plus a number of territorial authorities, we're starting to see a fairly impressive cross-section of stimulus-funded energy efficiency programs. Just one example comes from Nevada. Per their website: "The mission of the Nevada State Energy Office (NSOE) is to ensure the wise development of the state’s energy resources in harmony with local community economic needs and Nevada’s

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-74874054004920943292011-04-08T07:01:00.002-05:002011-04-08T07:10:20.989-05:00

Energy managers (should) spend a fair amount of time simply managing the expectations of their top leadership. The challenge is that everyone comes to the table with a pre-conceived notion of what energy management is and what it entails. Education is the first order of the day. Toward that end, the exhibit shown here is a one-page summary of energy management scenarios. Jump-start your

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-3797452763943676892011-04-03T09:11:00.008-05:002011-04-03T12:21:07.859-05:00

I just finished reading yet another online forum that questions why businesses fail to adopt the obvious benefits of energy efficiency. Energy efficiency proponents across the globe are discovering the same hurdle. The real culprit here is the threat of change. Organizations cannot address their energy performance without making changes to their status quo. I refer here to changes to capital

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-72085946883309402012011-03-15T16:24:00.002-05:002011-03-15T16:27:20.805-05:00

The Economist Intelligence Unit announced today the results of a global C-level executive study on energy efficiency and sustainability.The survey calls out the gap in perception between CEOs and other senior executives in their organizations. Respondents beneath the C-suite are significantly more likely (61 percent vs. 49 percent) to say that their organizations do not do enough to integrate

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-10789920247143673862011-02-01T16:54:00.003-05:002011-02-02T07:24:29.779-05:00

When the term “sustainability” appears in news headlines, it is usually the subject of policy debate. These debates seem to focus on the rights and privileges of investors and property owners. Debate is generally a good thing, but it’s pointless if the subject of debate is not clearly defined to all participants. This is often the case with concept of “sustainability.”To many observers, “

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-90500213614888564372010-09-28T15:13:00.004-05:002011-04-06T07:49:52.843-05:00

Since 1978, Texas A&M university has organized an annual conference devoted to industrial energy technology and management issues. The next conference is scheduled for May 17-19, 2011 at the Royal Sonesta Hotel in New Orleans. As a venue designed by and for practitioners, IETC is unsurpassed. Each year, and audience of 200-300 participants can take their pick of presentations ranging from

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-10868655713262139982010-08-06T04:40:00.006-05:002010-08-06T16:34:38.875-05:00

This two-hour online seminar will be conducted at 11:00 am eastern time on Friday August 13, 2010. Attendees earn .2 CEU or 2 PDH. For more information and registration, click here.Virtually all facilities have potential energy savings, and energy engineers can prove it. But do the directors of finance, operations, procurement, maintenance, and other departments understand what the solutions

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-22840747031409691532010-06-15T08:32:00.005-05:002010-06-15T08:45:58.072-05:00

NEW RELEASE, June 15, 2010: "North American Energy Audit Program Best Practices." This report presents the results of a survey conducted in late 2009 of 15 North American energy audit program coordinators and energy audit experts. It also references three recently published program-specific evaluation reports. Survey respondents represent programs that have collectively provided over 18,000

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-68343271613779534552010-03-18T16:59:00.006-05:002010-03-19T05:28:36.309-05:00

Think about how energy efficiency providers interact with large facilities. Top managers don’t have time for utility issues because “they have a business to run.” They delegate the contact to the Facilities department, because these are the people who are closest to energy issues. Here’s where it gets interesting: energy is only one of many duties that compete for the facility manager’s time

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-88894411074887224382010-03-06T12:09:00.008-05:002010-03-06T17:26:04.054-05:00

I saw the aftermath of a web discussion of "mandatory" energy audits. It became an ugly shouting match over constitutional rights. Being too late to participate, I thought I'd share the following observations:1. The average person is only vaguely aware of what an energy audit does is what it provides. We have to gently educate people so that they know, for example, that the energy audit

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-28489229667812780992010-01-12T21:45:00.003-05:002010-01-12T22:08:45.272-05:00

Put simply, the energy audit is a tool for identifying potential energy improvements and the value that these improvements should provide. But we find that energy audits may serve distinctly different audiences—the society as a whole, the audit recipient, or the audit provider. A variety of beneficiaries begets a variety of energy audit formats; no one format is optimal for all purposes at once

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-64576503604540256222010-01-04T20:38:00.003-05:002010-01-04T20:46:50.003-05:00

True energy savings come from three basic sources: (1) energy-efficiency baked into the design of a building and its mechanical systems, (2) operating and maintenance procedures, and (3) the behavior of its occupants. Read another way, energy savings are not simply a function of building design; human choices also play a role. There is growing interest in “continuous commissioning (Cx),” which

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-92007957013113778572009-12-21T21:53:00.004-05:002009-12-21T22:11:45.414-05:00

A survey of over 100 business owners emphasized cost cutting and innovation as a means to survive this year's economic turmoil. "Energy" is a cost-cutting option, no? Here are the survey highlights: Postitive outlook; long road ahead. A majority (57%) of business owners see business strengthening, but feel there is a long road ahead. One-fourth of those surveyed believe we have not “seen the

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-69119745499680022572009-12-06T21:18:00.004-05:002009-12-07T10:56:24.315-05:00

Last week, during a facility visit, I encountered yet another opportunity to explain what is meant by the term "energy efficiency." This time, it was a production manager who said to me (in so many words): "Energy efficiency means reducing the energy I need to grow my business." Really.So I thought about it, and responded this way:1. Think of your facility-- or any industrial process-- as a

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com2tag:blogger.com,1999:blog-36409505.post-75292496451634745402009-11-28T10:42:00.004-05:002009-11-28T13:45:13.204-05:00

Just because YOU investigate the concept of energy efficiency doesn't mean the rest of your organization (or your customer's organization) will. This is especially true for the subject of energy audits. Some education is usually necessary for people to understand the concept and what's at stake. I recommend these brief vids on YouTube as a quick and easy way to introduce the subject. These

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-25870523423141589212009-11-16T12:50:00.002-05:002009-11-16T13:08:01.524-05:00

Let's say, for whatever reason, that an industrial energy policy is not wanted or needed. Let's ignore for now the predictable rejoinder that "no policy" is itself a policy. From a U.S. perspective, here's the result:1. Without a public policy emphasis on energy, we'd be competing against "energy smart" economies that have a greater flexibility to handle resource scarcity and evolving

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-3428164944594800652009-09-03T11:28:00.006-05:002009-09-04T10:12:28.642-05:00

Here’s an all-too common scenario: It’s capital budget time. Everyone lines up with proposals. Industrials tend to favor capital projects that build the business—equipment to establish new product lines, plant expansions, new plants, and so on. And they should. Now, compare that to the typical facilities department offerings: stuff like chiller retrofits, boiler replacements, lighting

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-88990110726119619222009-08-19T21:17:00.002-05:002009-08-20T07:08:42.610-05:00

A superlative study of energy management as practiced by 48 U.S. corporations was released in April 2009 by the Pew Center on Global Climate Change. Their survey, conducted in early 2009, provides insight on how companies from a cross-section of industry formulate and implement energy cost-control strategies. While the survey includes both manufacturing and non-manufacturing companies, the

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-68884103258027013462009-08-14T12:26:00.001-05:002009-08-14T12:29:03.745-05:00

In most industrial organizations, daily decision-making can be woefully disconnected from the overall profit motive. Why? In part, this is because of the size and complexity of the organizations themselves. Because many skills and resources are needed to serve a production process, division of labor is a practical necessity. This is evident in the creation of departmental functions—- and

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-49277676483119746112009-07-16T21:18:00.002-05:002009-07-16T21:20:40.482-05:00

Here’s a true corporate energy management story. I share this with you to illustrate the role of strong communications. Energy managers need to be prepared to defend their agenda from short sighted “cost saving” decisions.A facilities director was informed that the electric utility serving their Arizona location would be raising their utility rates. Armed with his limited understanding of

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-65768414062764469072009-05-27T21:13:00.003-05:002009-05-27T21:18:28.006-05:00

Johnson Controls, Inc., a global multi-industrial leader in energy efficiency, commissioned research within the North American business community to examine perceptions of energy efficiency and sustainability. Named the Energy Efficiency Indicator (EEI), this survey includes responses from more than 1,400 executives responsible for managing, reviewing or monitoring energy use within their

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-49831667781943714002009-05-13T16:49:00.003-05:002009-05-13T16:53:45.451-05:00

Well-run companies are implementing formal corporate energy policies for the following reasons (in no particular order; the importance of these varies across companies): 1. Demonstrate administrative and legal compliance with respect to environmental liabilities, both current and future. Carbon is the big item here, but so are other direct emissions (fossil fuels used onsite) and indirect

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-48293351776671921092009-04-22T22:23:00.004-05:002009-04-23T06:37:11.624-05:00

1. As tempting as it may seem, think carefully about “free” energy audits. If the auditor is not working for you, then they are working for someone else. That MAY work to your disadvantage. Don’t be surprised if a window installer’s free energy audit concludes that your first priority is to install new windows! Decisions that shape your energy bills for the next 10-15 years should be free of

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-88008723479922939192009-04-07T22:05:00.005-05:002009-04-08T09:04:05.838-05:00

"Cost segregation" is a business exercise for recovering wealth. The idea is to properly reclassify assets from a tax depreciation perspective that allows the owner to legally reduce tax liabilities and increase cash flows.Here's how it works. A hybrid engineering/accounting exercise seeks to reclassify the assets that make up a subject property. All too often, an earlier accounting treatment

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-21828017681334109112009-03-30T21:21:00.005-05:002009-03-30T21:39:20.972-05:00

Why just read this blog when you, me, and 200 other like-minded folks can chat together in real-time? The U.S. Department of Energy's Industrial Technologies Program conducts a free web seminar each Thursday from 1 PM to 2 PM eastern. I was asked to present for the April 9, 2009 edition. Most presentations in the series are about technology, and rightly so. However, someone made the clever

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-65362424209275524442009-03-28T15:02:00.004-05:002009-03-28T21:01:26.883-05:00

Wealth accumulation is not unlike trying to fill a bucket. As investors, we seek ways to fill that bucket with cash flow. But leaks in that “bucket” will offset the inflow. A dollar lost has the same value as a dollar added.If you’re like me, you reacted to last year’s stock market melt down by looking for alternative investment opportunities. Being the energy geek I am, I finally decided to

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com2tag:blogger.com,1999:blog-36409505.post-83538328338363897272009-03-04T21:40:00.004-05:002009-03-04T21:44:57.288-05:00

This post describes the life-cycle cost concept and its application to energy management.“Life-cycle cost” describes the total cost of ownership for any asset placed in service by a business organization. This is more than just the “catalogue” or acquisition price. There are costs incurred for research prior to purchase, the cost of the asset itself, financing and installation fees, insurance,

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-24471827843951136892009-02-17T22:46:00.003-05:002009-02-18T07:56:07.028-05:00

In case you haven’t heard, the American Recovery and Reinvestment Act (ARRA, signed in to law on February 17, 2009) provides enormous sums of money for advancing energy efficiency initiatives that save energy, reduce carbon emissions, and yes—help to stimulate our moribund economy. Industrial Assessment Centers were a resource highlighted during the debate that led up to the ARRA’s

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-78351089718695087552009-01-23T15:16:00.005-05:002009-01-23T15:33:10.335-05:00

Deploy Energy Efficiency. There it is, a statement as declarative and straight forward as any of the other items in the Obama Administration’s energy plan. Thanks to Denis Du Bois, managing editor of Energy Priorities magazine for outlining the plan. Now hear this: my complaint is not with Mr. Du Bois, nor is it with the Obama Administration. And I am all for energy efficiency. I wince at

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-80622736929283794692008-12-02T20:16:00.000-05:002008-12-02T20:22:06.789-05:00

Oak Ridge National Laboratory (ORNL) has released Combined Heat and Power: Effective Energy Solutions for a Sustainable Future, a new report highlighting Combined Heat and Power (CHP) as a realistic solution to enhance national energy efficiency, ensure environmental quality, promote economic growth, and foster a robust energy infrastructure. The report provides an in-depth discussion of current

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-67562995209682691012008-10-28T19:57:00.001-05:002008-10-28T20:00:43.144-05:00

All of us, by now, have heard the outcry over Barack Obama’s intention to “spread the wealth.” While cable news pundits of all stripes are having a field day with that one, no one has yet to point to a glaringly obvious alternative: Rather than spreading the wealth, why not ensuregreater access to wealth for a wider population? Let’s now put this into the context of industrial

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-4565916696999392392008-10-10T06:55:00.002-05:002008-10-10T07:11:00.487-05:00

True story: A regional manufacturers' association posed a question to its members, seeking some idea of what industrial organizations are doing in response to the real and perceived threats imposed by the current financial and economic crisis.My response: Some manufacturers are looking at the reality of downtime due to a slowdown, but they are seeing this as an opportunity to make plant and

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-4234002676517413452008-09-02T22:39:00.000-05:002008-09-02T22:40:12.091-05:00

Life-cycle cost analysis is a straight-forward approach to measuring the total cost of owning a particular product or asset. This concept is particularly useful when acquiring an asset that has ongoing costs of operation, such as fuel, power, maintenance, insurance, interest (holding) costs, and other expenses above and beyond the initial investment. The life-cycle cost concept is championed

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-68767939146107971422008-08-24T06:47:00.000-05:002008-08-24T06:54:35.367-05:00

On online forum recently posed this question:"Which technologies are likely to have the most cost-effective impact over the next 5 years or so on either climate concerns or energy security (or both)?"My response:A wide array of energy-efficient production, monitoring, and consumption technologies already exist. End-use savings are often derived from "mundane" items like insulation and combustion

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-21701257168603839272008-08-12T22:31:00.003-05:002008-08-13T08:10:18.221-05:00

Show me a business factor that is low-cost, stable, predictable, and non-controversial, and I’ll show you a factor that is easy to manage. Until recently, fuel, power, and other utilities were a great example of easily-managed inputs. But as we all know, everything about energy is changing: its availability, its cash flow impacts, and the legal and environmental consequences of its use. Energy

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-26587347481759881812008-08-05T12:23:00.006-05:002008-08-05T15:01:30.211-05:00

It’s no secret that the U.S. industrial sector is struggling with high energy costs. managers react first by chasing lower prices. But what about eliminating waste so they don't have to buy so much in the first place? Corporations seem to pursue these solutions at a snail's pace. Some current data from the U.S. Department of Energy’s Industrial Technologies Program provides some insight on

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-36829808254672360212008-07-30T19:36:00.001-05:002008-08-01T07:26:49.504-05:00

I had a great conversation this week with a colleague. She made one of those profound statements that instantly and thoroughly resonated with me, as I think it will for you: “First costs are not last costs.”As anyone who promotes industrial energy efficiency knows, facility managers operate with tight budgets. First costs—meaning the initial cost of buying an asset—are the sole focus of a

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-10384955079127137622008-07-16T20:44:00.005-05:002008-07-17T04:45:25.087-05:00

When seeking ways to reduce energy costs, where do business organizations go for help? For many, the choice boils down to in-house versus outsourced expertise. The issues here are many: Who provides the best outcome? Who brings truly valuable expertise to the task? Who has ulterior motives or hidden agendas that may lead to a less-than optimal solution from a business standpoint? Let’s take

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-45399106978839501662008-07-14T13:14:00.001-05:002008-07-14T13:29:59.346-05:00

"Energy Cost Control: How the Money Works" is a presentation that I have given a number of times across North America. The next presentation will be on Friday, July 18 at 2:00 pm eastern time. This will be live and online, given by the Association of Energy Engineers. For more info and to register, please link to: http://www.aeecenter.org/realtime/CostControl/.The online presentation is a

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-70832701070839609832008-07-01T22:08:00.002-05:002008-08-01T16:43:17.152-05:00

Many industrial facility managers are looking outside their organization for some kind of free assistance for controlling their energy costs. Energy assistance programs of various kinds are conducted by certain state, federal and utility outreach offices. It costs money to conduct these programs, and that money almost always comes from tax payers, utility ratepayers, or from industry associations

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-30342011838833161682008-06-12T19:42:00.002-05:002008-06-12T20:12:46.671-05:00

On June 10, I had the great pleasure of meeting and interviewing R. James Woolsey, former CIA director and current energy advisor to the McCain campaign. Jim presents not only an impressive resume of service to our country, but he also has superlative communication abilities. More on that in a second.The event was the Virtual Energy Forum, an online energy conference that allowed global

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-51262890252158329572008-06-03T20:10:00.000-05:002008-06-03T20:13:55.398-05:00

Chances are that your organization is trying to tame energy costs AND break into the market for “green” products and services. Your marketing people are probably pursuing the green opportunities. To what extent are they connected to your energy costs? I’ll challenge you to think of energy cost control and “green” business opportunities as two sides of the same coin. Companies can make the

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-24357889607830904822008-05-20T23:39:00.001-05:002008-05-20T23:53:37.963-05:00

We read daily about the many organizations that rush to establish their green credentials-- that is, to prove the minimal environmental impact of their products and operations. Some of those many companies actually understand that energy use and waste are key components of green performance. Accordingly, these companies are proactively trying to manage their energy use to save money,

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-68794844391797761862008-05-15T22:01:00.002-05:002008-05-20T23:50:54.984-05:00

Xcel Energy of Minnesota hosted an Industrial Energy Efficiency Forum in St. Paul on May 6. About 100 attendees were there to find out what Xcel could help them do to reduce energy expenses. Of all the attendees, about 41% work with organizations that spend over $1,000,000 per year on energy. Thanks to Chandan Rao of Graphet Inc., we got the results of a live survey that measured the attendees

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-56510484943049706732008-04-30T19:45:00.000-05:002008-04-30T20:09:51.674-05:00

Johnson Controls recently released the second edition in what is apparently an annual series of North American energy efficiency market surveys. While I have a few bones to pick with the methodology, it's generally a useful snapshot of business sector's intentions for adopting energy solutions. You can download the whole survey, if you like. My scan of it reveals these highlights:1. 49% of

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-56649618665253488632008-04-22T20:49:00.001-05:002008-04-22T20:56:43.160-05:00

Businesses invest in themselves for two basic reasons: to grow their revenue potential, or to reduce their operating expense burdens. Energy improvements are generally perceived as expense reduction efforts, although some companies are able and willing to tabulate the productivity gains (and incremental revenue) that result from the recapture of energy waste. These two basic investment

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-77373898636633669402008-04-01T20:10:00.001-05:002008-04-01T20:28:09.941-05:00

Do you manage your facility's energy use? If so, you invest some combination of risk, time, and money. As far as results, you get what you pay for.Click on image to enlarge

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-36679599770699111172008-03-19T20:29:00.000-05:002008-03-19T20:35:09.402-05:00

A good first step is to translate the highlights of the audit report—a technical document—into non-technical terms that will resonate with non-technical business leaders. The report’s simple list of recommendations should be evolved into a business plan for action. Your energy audit report probably says nothing about which department in your organization should pay for improvements, which

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-10406183666178200882008-03-13T11:26:00.002-05:002008-03-13T16:31:13.064-05:00

The “triple bottom line” concept is gathering momentum especially among publicly-traded companies. In broad terms, it describes a corporate effort to focus on more than just financial results. We all understand the bottom line to mean “money,” but for a variety of reasons, businesses are forced to recognize their environmental and social impacts as well. The sustainable business model is one

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-67859191315281936812008-03-05T00:54:00.004-05:002011-10-28T07:35:18.346-05:00

The decision to operate both heating and cooling sources at the same time is a waste of energy and money in several ways. I'll tell you my story below. But first, consider this:1.) The air conditioner's compressor and other critical components were not designed to achieve heat exchange in cold temperatures. Sure, it will "run," but doing so will hasten its mechanical demise and accelerate its

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-25533961248965471872008-02-18T08:12:00.001-05:002008-02-18T18:38:05.447-05:00

Anyone who follows energy industry trade press is aware of the growing need for power generating capacity in North America. There’s no question that more capacity is needed. A nice summary of the issue is presented in 15 slides by Harold Garabedian of the Vermont Agency of Natural Resources and member of the International Air Quality Advisory Board. There are many people who question just how

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-10080148768356298472008-02-12T20:02:00.000-05:002008-02-12T20:15:31.253-05:00

In many industrial facilities across North America, there are individuals who want to do something to control energy costs, but they lack support from the rest of their organization. One person recently wrote me, lamenting that he was "unable to justify a costly monitoring system without concrete energy data," and at the same time was "unable to gather concrete energy data without a monitoring

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-57788472459590940122008-01-28T22:07:00.000-05:002008-01-28T22:13:13.446-05:00

1. Top management must demonstrate its clear and durable intent to progressively improve the energy performance of the entire organization. Management should also declare amnesty and hold individuals blameless for past choices that caused energy waste.2. Develop energy-use profiles at the facility level. Benchmark and regularly track the volume of energy that the facility “should” use.

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-56725565311638781662008-01-21T19:58:00.000-05:002008-01-21T20:14:29.782-05:00

If energy gets too expensive, look for a lower price, right? In states with deregulated utility markets—that is, where people have a choice of suppliers—this is exactly what many consumers do. And this is what they should do. But is this enough?For reference, a number of entries to this blog discuss the opportunities to save money by reducing energy waste. Just a few of those entries include:

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-41249420643504104422008-01-15T20:49:00.000-05:002008-01-15T21:01:20.124-05:00

As 2008 gets underway, a number of states, provinces, utilities, and trade associations are gearing up a variety of programs to help their commercial constituents get a handle on energy costs and carbon emissions. The timing for this is good: the economic penalty to a business that refuses to control energy waste goes up as energy prices increase (which they are) and as interest rates decline (

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-51929398351893449082008-01-09T12:51:00.000-05:002008-01-09T18:33:41.901-05:00

The Energy Independence and Security Act of 2007 was signed into law on December 19, 2007. A stroke of the president’s pen provides what the Alliance to Save Energy calls “the most sweeping energy efficiency legislation ever enacted.” Here’s a summary of what this legislation means for commercial and industrial energy managers. If your agenda is to improve business performance by reducing

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-16647073935386381642008-01-02T19:16:00.000-05:002008-01-02T19:31:08.858-05:00

If you are a successful energy manager, it’s probably because you harmonize your agenda with your organization’s core mission. In other words, you demonstrate how your efforts contribute to operating income, hours of availability, reliability of operations, or other key metrics that are important to your top management. Because of your communication skill, the front office understands how

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-47261733689225927462007-12-21T12:05:00.000-05:002007-12-28T10:20:42.527-05:00

What kind of year will 2008 be for manufacturers and the rest of the U.S. economy? The business press sounds cautious, pointing to weak housing and credit markets. Regardless of what happens, wealth does not disappear—it simply awaits harvesting from alternative sources.If the coming year’s economic growth slows as expected, it will be an ideal time to develop wealth from within. This means

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-76041004021029583512007-12-16T21:57:00.000-05:002007-12-16T22:04:57.554-05:00

The facility manager for a precision-tool manufacturer in Maryland had a simple energy strategy: shop for the lowest-priced fuel available. To do this, he gladly enlisted the help of an independent energy advisor. In early 2007, this advisor encouraged him to pursue a business plan for energy improvement. Beginning with an energy audit, this plan would inventory the “gap” between current

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-24145248219424272252007-12-09T21:32:00.001-05:002011-11-08T10:22:33.784-05:00

An industrial energy manager’s job is to protect the organization’s business performance from the risks imposed by today’s volatile energy markets. Depending on the scope of authority vested in such a manager, the job could range from simply administering utility bills to implementing a business plan for continuous energy improvement. The energy manager’s job has implications for the

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-68820910451187324612007-12-03T21:04:00.000-05:002007-12-03T21:12:47.352-05:00

Stock analysts will tell you that the typical industrial executive is fully challenged to remain in control of his or her company’s top three business issues. These usually include revenue/profit targets, product development, and “stay-out-of-jail” compliance issues. Energy doesn’t make the list. It’s one of those “other” issues that are routinely delegated down below the executive suite. This

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-47036521172423699912007-11-26T16:37:00.002-05:002011-04-08T09:31:02.210-05:00

Energy management is practiced to varying degrees by manufacturers throughout industry. No one company or industry dominates the practice. While it is easier to identify energy management leaders among Fortune 500 companies, there are also small, privately held companies that excel at stewardship of energy and other resources. Here is an overview of ten companies’ accomplishments (Full text of

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-76039781990202330942007-11-20T13:34:00.000-05:002007-11-21T09:52:31.451-05:00

Today’s post takes a new look at the financial criteria that businesses use for justifying energy improvements. The take-away points are these: 1. By focusing on payback, the business explicitly perceives energy cost control as a series of isolated projects as opposed to a coordinated and continuous improvement process.2. As you will see below, "payback" is a risk management tool that is

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-83647145460413802372007-11-13T21:24:00.000-05:002007-11-13T21:39:48.330-05:00

Energy is simply another form of currency that embodies wealth. Currency creates wealth if it is used properly. Fuel and electricity, like currency, are expended by a business to create new value. A well-run business controls its currency and the wealth it represents. That "currency" can and should include energy.Consider how currency is used in business. Every business transaction

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-56086234571796455492007-11-05T14:29:00.001-05:002007-11-05T14:54:18.288-05:00

This is the third in a series of three blog entries that attempts to explain electricity markets: why regulation was necessary at one time, why it may not be now, and what it means to be an electricity consumer in the wake of deregulation. Part 1 provides the background. Part 2 explains how deregulation works from a consumer’s perspective. Part 3 describes the choices available to deregulated

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-59112604566427400722007-11-05T14:26:00.000-05:002007-11-05T14:47:29.961-05:00

This is the second in a series of three blog entries that attempts to explain electricity markets: why regulation was necessary at one time, why it may not be now, and what it means to be an electricity consumer in the wake of deregulation. Part 1 provides the background. Part 2 explains how deregulation works from a consumer’s perspective. Part 3 describes the choices available to

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-59111515842353404912007-11-05T14:23:00.000-05:002007-11-05T14:45:26.223-05:00

This is the first in a series of three blog entries that attempts to explain electricity markets: why regulation was necessary at one time, why it may not be now, and what it means to be an electricity consumer in the wake of deregulation. Part 1 provides the background. Part 2 explains how deregulation works from a consumer’s perspective. Part 3 describes the choices available to deregulated

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-71104287902256471022007-10-31T05:50:00.000-05:002007-11-21T07:37:21.194-05:00

A major energy challenge is to identify manufacturers’ embedded energy costs. Managers at each stage of manufacture may overlook energy waste because “energy is only two, three or five percent” of production costs. But the prices of final products must absorb these layers of energy inputs. For example, the direct energy cost for assembling an appliance might be only a few dollars—and a very small

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-35113684881590864452007-10-23T20:08:00.000-05:002007-10-24T05:04:40.484-05:00

Industrial energy management literature has become a veritable smorgasbord of technical how-to reference material (see the U.S. Department of Energy's BestPractices). This body of work will satisfy technical minds, but it is of little interest to corporate decision-makers who busy themselves with strategy, vision, and stakeholder communications. Is energy not a strategic issue? The U.S. EPA

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-84945518489824570322007-10-15T08:54:00.000-05:002007-10-15T09:02:44.281-05:00

Greetings from Vancouver, where I’m scheduled to speak tomorrow at BC Hydro’s Power of Business conference. The title of this event alone is indicative of the evolution of thinking that industrial energy consumers need to meet today’s energy challenges. With my presentation, I hope to take this thinking a step further. I will describe energy as wealth—or specifically, a form of “cash” that

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-59497573362978425352007-10-09T06:23:00.000-05:002007-11-21T07:58:57.815-05:00

This morning, a Canadian visitor to my blog sought the "payback on an energy audit." Interesting question. In fact, the payback on an energy audit itself is always zero. Zip. Payback measures apply to the actual improvement measures that the audit recommends. Just because you have the energy audit report on your desk, doesn't mean you have saved anything. All energy audit recommendations

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-53743983126464690252007-10-02T22:07:00.000-05:002007-10-02T22:21:02.493-05:00

My good friend and mentor Mike Pappas is the world's best at divining the root causes of an organization's failure to tackle its energy waste. I described to him a large manufacturing facility that has been pondering energy management options for months now. Internal discussions among staff revealed general support for the IDEA of pursuing energy management, but when it comes down to DOING

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-14673976753492066612007-09-27T06:16:00.000-05:002007-10-24T08:51:07.692-05:00

“Do nothing” may be a valid way of dealing with energy costs. It’s a particularly attractive choice if you are determined to operate the plant the way you've always done it. You don’t have to run the gauntlet of approvals to get money for energy improvement projects, and you don’t have to force people to change behaviors and procedures. You avoid the risk of getting fired because the project

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-84363220319876667812007-09-17T23:11:00.008-05:002010-01-12T22:19:25.920-05:00

You landed here because you’re looking for a free energy audit for your business facility. Please read this post--in just two minutes, you learn what an energy audit is and what it is supposed to do. You can then decide whether or not a "free" energy audit makes sense for you. I share some thoughts about other forms of free energy assistance elsewhere.Understand the purpose and outcome. An

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com7tag:blogger.com,1999:blog-36409505.post-45758455639702568932007-09-12T20:34:00.000-05:002007-09-13T08:27:55.532-05:00

I will be conducting an energy seminar via Internet on September 20, 2007 and again on November 1, 2007. The title is "Energy Cost Control: How the Money Works." These are produced by the Association of Energy Engineers. To sign up, please click here. The two-hour program will provide insight on: * Translating the costs and benefits of energy improvements into terms that resonate with

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-29832460756284106432007-09-12T19:35:00.000-05:002007-09-13T16:29:12.769-05:00

Here's the point of this post: you can either buy energy, or pay to avoid buying it. You should know what the cost is in either case. Today, I visited a corrugated container manufacturer with a boiler that's near the end of its useful life. Annual boiler fuel consumption works out to 390,780 therms of natural gas. In its current condition, the facility's boiler fuel is used as follows: 1.

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-14671379441283315012007-09-04T19:36:00.000-05:002007-09-04T19:43:22.136-05:00

Notice that in the title of this article, there are only two choices: move forward, or fall behind. When it comes to energy management, there is no “idle” setting. Failing to take action has its costs, too. This is the implicit choice of companies that choose to continually resist their pursuit of energy cost control. If you choose to “do nothing,” it costs nothing, right? Let’s think about

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-38884038743409541822007-08-28T19:23:00.000-05:002007-08-29T06:32:14.185-05:00

Finally! The Wall Street Journal has devoted attention—a whole special section in the September 27, 2007 edition—to energy cost control in the business sector. This is a major milestone, because the WSJ's historical energy focus has been limited to drilling, refining, and generating more supply. Coverage in the WSJ will inspire a lot of discussion, but how will industrial energy users actually

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-18325109886099969652007-08-22T14:09:00.000-05:002007-08-23T06:51:33.529-05:00

“Lean manufacturing” is widely espoused in the manufacturing sector. However, it’s not always implemented effectively. The literature describes lean manufacturing as a continuous improvement process for reducing defects, improving product quality, and reducing costs. Naïve adoption of the “lean” concept leads to simple cost cutting and doubling-up of roles. If not done right, these cuts can

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-8809340483034574052007-08-14T20:08:00.000-05:002007-09-01T11:20:51.491-05:00

Why does our facility have energy cost problems—again? We’ve been doing episodic energy projects for 35 years, but energy costs are still gobbling up our operating margins. Procurement and hedging schemes counteract energy price volatility, but they don’t lower the price we pay. We need to cut the waste... and stop frittering away money on energy we don’t need to buy.Here’s the problem: we

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-5219907325949941452007-06-19T10:35:00.000-05:002007-06-20T06:31:10.763-05:00

The National Association of Manufacturers recently took a major step forward in promoting energy efficiency to its member companies. A June 11, 2007 press release announces NAM’s partnering with the U.S. Department of Energy to promote energy efficiency “best practices.” Finally, and thanks to NAM, the industrial energy efficiency message is being directed to a corporate audience. Energy

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-47488247105894247032007-06-12T20:39:00.000-05:002007-06-12T21:08:09.606-05:00

As you know, the messenger can be just as important as the message itself. "Energy efficiency" has been tirelessly promoted by government agencies, utilities, and non-profits for years. The industrial sector's reaction has been cautious, at best, for a variety of reasons discussed in earlier blog posts.Now, the National Association of Manufacturers (NAM), which is the manufacturing sector's

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-58918224157885781972007-06-04T22:08:00.000-05:002007-06-05T12:04:04.672-05:00

We’re all familiar with the monthly budget review meeting. This is when the general manager sits down with department heads to compare the latest month’s financial results to the organization’s operating budget. This is one way in which department managers are held accountable for their year-to-date fiscal performance. It’s a very common and well-intentioned business habit. It’s also

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-83424167172266227592007-05-29T21:39:00.000-05:002007-05-29T21:45:49.069-05:00

Are we about to see a breakthrough in promoting U.S. industrial energy efficiency? Maybe. Most of the right pieces seem to be falling in place.First, here’s a bit of background: For the past 10-15 years, U.S. industrial energy “policy” has been the result of scattered initiatives, each coming from an equally scattered collection of government agencies and trade associations. For example, we

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com1tag:blogger.com,1999:blog-36409505.post-19107505059396752872007-05-22T21:40:00.000-05:002007-10-18T16:53:10.669-05:00

As a long-time fan of American football, I remember watching some great quarterbacks supported by less-than stellar teammates. Think of the Redskins’ Sonny Jurgenson during the 1960s, the Saints’ Archie Manning during the 1970s, or the Broncos’ John Elway during much of the 1980s. Without a proper complement of skill players, those great quarterbacks could not single-handedly carry the team

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-35704691404591705582007-05-16T08:10:00.000-05:002007-05-16T08:13:50.585-05:00

I just wrapped up two days at Armstrong’s Energy Management Council in Chicago. Armstrong is a leading provider of energy system and service solutions for energy consumers. Their ongoing challenge is to serve clients that are equally challenged to balance the factors of time, risk, and money as they seek solutions to today’s dynamic energy markets.The Council is an opportunity for energy

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0tag:blogger.com,1999:blog-36409505.post-87136955782068276542007-05-09T00:24:00.000-05:002007-05-10T20:00:48.678-05:00

A thought came to me today at the Industrial Energy Technology Conference in New Orleans. The energy that an organization consumes is either put to work or lost to a variety of causes, many of which are avoidable. Unavoidable losses are best attributed to the laws of physics and thermodynamics. Perhaps another blog out there will explain those phenomena better than I can. Let’s focus instead

Christopher Russellhttp://www.blogger.com/profile/07058892111206366453noreply@blogger.com0